American Standard Television Tube Corp.

Text (OCR of the scan at left; may contain errors)

IN Tile :\IATTER OF A,vlERICAN STANDARD TELEVISION TUBE CORP. ET AL. COXSEN'l ORDER , ETC. , IN REGARD TO THE ALLEGED VIOL '\TION OJ" Tile FEDERAL TRADE CO)IMISSIO ACT Docket 8107. Complaint, Ang. 1960-Decision, Feb. , 1961 Consent order requiring a manufacturer of rebuilt television picture tubes containing used parts and its exclusiyc sales agent, to cease representing falsely that certain of their televisioll tubes were new in their entirety, by su('h statements on labels and otherwise as "This is a KEW Du1Iont AMERICAN STAKDAHD TELEVISION:\T TUBE CORP. ET AL. 225 224 Complaint Licensed PICTURE 'lTBE" , and to disclose on the tubes, cartons, invoices etc., that the tubes were rebuilt.

COMPLAINT Pursuant to the provisions of the Federal Trade Comnlission Act and by virtue of the authority vested in it by said Act, the Federal Trade Comlnission, having reason to believe that American Standard Television Tube Corp., a corporation and A. S. T. Sales Corp. , a corporation and Jack Cherches and Alan H. Shindel, individually and as offcers or said corporations, hereinafter referred to as respondents, have violated the provisions of saiel Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PAIL\GRAPH 1. Respondent American Standard Television Tube Corp., is a corporation organized, existing and doing business under and by virtue or the laws or the State of New York, with its principal offce ami place of business located at 94-50 158th Street J amaica, New York.

Respondent A. S. T. Sales Corp., is a corporation organized existing and doing business under and by virtue of the Jaws of the State or ew York, with its offce and principal place of business located at 94-50 158th Street, Jamaica, Ne" York. Said corporation is the exclusive sales agent for American Standard Television Tube Corp. and both corporations cooperate and act together in carrying out the acts and practices hereinafter set forth. Respondent ,Tack Cherches and Alan H. Shin del are offcers and directors of both corporate respondents. They formulate, control and direct the policies, acts and practices of the corporate respondents. The,il' address is the same as that of the corporate respondents.

PAn. 2. Responents are Ilo"W, and ror some time last past. have been, engaged in the manufacture, offering for sale, sale and distribution of rebuilt television picture tubes containing used parts to dist.ributors for resale to the public. PAR. 3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said prodllcts, when sold, to be shipped from their place of business in the Stat.e of ow York to purchasers thereof located in various other States of the United States, and maintain, and at all times mentioned herein have lnainta-incd, a substa,ntial course in trade in said C,81-2:\7-(i8- 226 FEDERAL TRADE COMMISSIO DECISIONS Complaint 581!'. products, in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAH. 4. In the course a.nd eoucluct of their business, and for the purpose of inducing the sale of their products, respondents made certain statements concerning their products on labels and by other media. Among and typical of such statements is the following: This is a NEW Du::Iont Licensed PICTUHE TI:BE 'l' his is Another NEW STANDARD TELEYISIOX PICTURE TUBE PAR. 5. Through the use of the aforesaid statement respondents represented that certain of their television picture tubes were new in their entirety.

I'.UL G. Said statemcnt and representation "as falso misleading and deceptive. In truth and in IfLct, the television picture tubes represented as being '; loew are nol nmv in their entirety. PAH. 7. The television picture tubes sold by respondents are rdJ1ilt containing used parts. Respondents do not disclose on the or on invoic.estubes, or on the cartons in Iyhic11 they are packed, or in any other manner that said television picture tubes are rebuilt and contain used parts.

\Vhen television picture Lubes arc lel:mill containing used parts, in the abs'2nee of a disc.osurc to the contrfLry, such lubes axe understood to be and are readily accepted by the public as new tubes. \H. 8. By failing to disclose the facts as set forth in Pa.ragraph Seven, respondents place in the hands of uninformed or unscrupulOllS dealers means and instrumentalities whereby they may mislead and deceive the public as to the nature of their said television picture tubes.

PAH. 9. Tn thc conduct of their business, and at all times mentioned here.in, respondents have been in substantial cOInpetition, in commerce, Iyith corporations, firms ancl individuals engaged in the said of telcyision picture tubes.

m. 10. The use by re,sponc1pnts of the afol'C'said false, misle,adiug uncl c1decep; iyc statements andl'cpn' scntalions i11ul the -failnl'e of respondents to disclose on their trlryision rictnrc tubes, on the , or in any othercarlons in which tilly are, packcd 011 invoices manner, that they are rebuilt, containing used parts, have had, and now have, the capacity and tendency to mislead members of the A.\1ERICA.c" STANDARD TELEVISION TUBE CORP. ET AL. 227 224 Decision purchasing public into the erroneous and mistaken belief that said picture tubes are new in their entirety and into the purchase of substantial quantities of respondents' said tubes by reason of said erroneous and mist.taken belief. As a consequence thereof, substantial t.trade in c.commerce has been, fmcl is being, unfairly diverted to respondents from their competitors and substantial injury has thereby been, and is being, done to competition in commerce. \R. 11. The aforesaid ads fmc1 practices of respondents, as herein alleged, were, and arc, a.l to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act.

Jh. JIichael .1. Vitale for the Commission. Respondents Fro se.

ITIAL DECISION BY 'VALTEH.n. , TOI-DtSON, IIE.ARlXG EXAMINER In the complaint dated August 29, logo, the respondents are chn.rgcd with viohtt.ng the provisions of the Federal Trade Commission Act.

On K oyemuer 18 , 1 f)EiO t.he re,sponclents entered into an agreement with counsel in support of the complaint for a consent order. Under the foregoing agreement, the respondents admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cea,se and desist order there set forth may be entered without further notice and have the same force and effect as if entered after a fnll hearing and the doc.ument includes a waiver by the re.spondent.s of al1 rights to challenge or contest the validity of the order issuing in accordance therewith. The agreement fnrt,her recit.es that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated thc law as alleged in the complaint.

The hearing examiner finds t.hat the content of the agreement meets all of the re(juirements of section 8.25 (b) of the Eules of the Commission.

The hearing exa.miner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding fls to all of the pardes, the agreement is hereby accepted and it is ordered that the agreement shall not become part of the oll(:ial record of t.he proeeecling unless and until it hecomes a pilrt of the decision of the Commission. The following .iurisdictional findings are mac1c ftlcl t-he following order issued. , .

228 FEDERAL TRADE COMMISSIQ), DECISIONS Decision ;'8 F. 1. Respondent American Standard Television Tube Corp., and A. S. T. Sales Corp., are corporations existing and doing business , \vithunder and by virtue of the Jaws of the State of :Ne" York their offce m;d principal place of business located at 94-50 - 158th Street J amaic,j, New Yark.

Respondent Jack Cherches and Alan H. Shin del are offcers of said corporate respondents. They formulate, direct and control the acts and practices of the corporate respondents. Their address is the sa,me as the corporate respondents.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the pubhc interest.

ORDER It is ol 'dei' That respondents American Standard Television Tube Corp. , a COl'pol'fltion A. S. T. Sales Corp. , a corporation, and their officen3, and Jack Chel'ches and Alan 1-1. Shindel, indivic1uall:and as officers of said c.orporations, and said respondents' representatives, agents and employees, directly or through any corporate or other device, in connection ,with I-he offering for sale, sale or distribution of television picture tubes c.ont.aining used parts, in commerce as " COI1InCl'CC " is defined in the Federal Tnlde Commission Ad, do forthwith cease and desist from:

1. Representing, direct 1y or by implication that such television picture tubes are new;

2. Failing to clearly disclose on the tubes, on the carton in which they are packed, on invoices and in advertising, that said t.ube.s arc rebuilt a.nd contain used parts;

:1. Placing any means or instrnmenta.Ety in the hands of others whereby t.hey nmy mislead the public as to the nature and condition of their television picture tubes.

nECISIOX OF 'n-IE CO::DIlSSIQX \ND ORDER TO FILE REPORT OF COl\IPLL\ Pursuant to section 3.21 of the Commission s Hllles of Practice. the initial (le( ision of the hearing exmniner sha. , 011 the 16th day of ebl'l1ary. 1D61 become the decision of the Commission; illHl accol'clingly:

1 t i8 ordered Tlmt respondents herein shall, "within sixty (60) days after seryic.e upon them of this order, file with the Commission a report. in writing setting forth in detail the 111anner and form in which they have complied with the order to cease mlcl desist. ARTISAX GALLERIES 229 229 Complaint